The present invention generally relates to purchasing goods and services over the Internet. More particularly, the present invention relates to a prepaid cash card which is used as a substitute to conventional credit cards for secure commercial transactions over the Internet.
The Internet is a global computer super-network consisting of numerous sub-networks. The majority of users connect their computers to the Internet indirectly via a standard analog telephone connection or a digital services connection to an Internet service provider, whose computer is more directly connected to the Internet or one of its sub-networks. The Word Wide Web is a distributed hyper media system in which multimedia information, such as combinations of text, still or moving images, and sound, is transferred via the Internet in accordance with hypertext transfer protocol. Oftentimes the terms Internet and World Wide Web are used interchangeably. A software product known as a browser, executing on a user's computer, is used to retrieve the information and cause the user's computer to display it. An Internet service provider may provide a browser to its subscribers that is integrated with the communication software. The Internet is a client-server system in which the users remote computer operating under a controlled browser constitutes a client platform that requests hypertext documents, and the host computer operating under control of its own software constitute a server platform that provides the documents in response to the client's request.
A user may purchase goods or services via the Internet. The term “electronic commerce” is commonly used to refer to such transactions. Merchants may provide information and offers regarding their products or services in the form of hypertext documents, known as web-sites, that they publish on the World Wide Web. Hundreds of millions of dollars per year are spent in the U.S. on purchasing items and services over the Internet. Due to the very nature of the Internet, a company may be based hundreds or even thousands of miles away from the purchaser. This presents a problem in that without company name recognition, the potential purchaser is unsure of the reputation of the company. Also, the company may not have a traditional brick and mortar site in which customers visit to purchase similar goods and services, but rather simply a web presence.
Due to the nature of the Internet, the vast majority of commercial transactions occur by providing credit card information, including credit card number and expiration date of the credit card, on a hypertext form or field and transmitting the information to the merchant's server. Once approved, the product may be shipped to the user by conventional means, or it may be delivered electronically via the Internet itself in the case of software or other services provided over the World Wide Web. A similar process is used for those merchants that accept debit cards. Debit cards are commonly used to pay for retail goods, telephone calls, highway tolls, restaurant meals, etc. Although the debit card may have a low credit balance, typically the debit card is associated with an account into which money is deposited by the holder of the debit card. In order to obtain either a credit card or a debit card, an application is typically filled out and submitted which includes personally identifying information such as telephone number, address information, social security number, annual income, family members names, etc.
While most purchases present no problems, occasionally a purchaser will attempt to purchase goods or services from an unscrupulous company which in reality has no goods or services but is merely defrauding consumers. Such companies obtain the credit card information and use it for cash advances, unauthorized purchases, etc. Additionally, there is an overreaching concern of privacy on the Internet. For example, those who are technologically savvy may pull off information from the data lines or from databases which have been accessed without authorization. These thieves who intercept or otherwise procure this information can likewise use the credit card information to make purchases, etc. Many credit cards offer a spending limit of several thousand dollars. However, if the card number is stolen, the consumer may only have to pay a small fee (typically less than $200.00), although the credit card issuing company and the companies from which fraudulent purchases are made stand to lose an enormous amount of money from such fraudulent transactions.
Perhaps of equal concern is the providing of credit card information and other personal information to reputable companies who then sell the personal information to marketing firms, telemarketers and others. This can result in a tremendous amount of “junk mail” and unsolicited telephone calls to the purchaser who provided such information during a single transaction with one company, but who is contacted subsequently by many other companies in which the purchaser may have no interest.
Accordingly, there is a need for a system which allows purchases over the Internet with the same convenience and ease as with the use of credit or debit cards, while protecting the monetary and privacy interests of the purchaser. The present invention fulfills these needs and provides other related advantages.